Adding Fuel to Fire: Why Somalia’s Oil Could Prove to Be a Curse. By Rasna Warah

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Adding Fuel to Fire: Why Somalia’s Oil Could Prove to Be a Curse. By Rasna Warah

February 18, 2019| Arlaadi Online

The decision by President Mohamed Abdullahi Farmajo’s government to put Somalia’s oil reserves on the predatory oil and extractive industries’ market argues RASNA WARAH could prove to be a resource curse and a recipe for disaster in a country that has suffered from more than two decades of civil war, fledgling state institutions, absence of checks and balances and which has few or no regulatory frameworks or laws in place to manage its oil in the interest of the Somali state and its people.


Early this month, dozens of people gathered outside the Claridge’s Hotel in central London to protest against the Federal Government of Somalia (FGS)’s decision to award oil exploration licences to foreign companies later this year. The hotel was the venue for the International Conference on Somalia Oil and Gas that was hosted by Spectrum, a leading seismic data processing company. The conference was aimed at showcasing possible locations in Somalia where crude oil reserves can be exploited. Last year, the FGS announced a first round of bidding on 206 offshore oil blocks, mainly in southern Somalia. The decision by President Mohamed Abdullahi Farmajo’s government to put Somalia’s oil reserves on the predatory oil and extractive industries’ market is being viewed by many as a recipe for disaster in a country that has suffered from more than two decades of civil war and which has few or no regulatory frameworks or laws in place to manage its oil in the interest of the Somali state and its people. Jamal Kassim Mursal, who was the permanent secretary in Somalia’s petroleum ministry until last month, when he resigned, told the Voice of America that Somalia was not yet ready for any oil exploration because “nothing has changed – petroleum law is not passed, tax law is not ready, capacity has not changed, institutions have not been built”. The decision by President Mohamed Abdullahi Farmajo’s government to put Somalia’s oil reserves on the predatory oil and extractive industries’ market is being viewed by many as a recipe for disaster in a country that has suffered from more than two decades of civil war. Read more at Adding Fuel to Fire: Why Somalia’s Oil Could Prove to Be a Curse 

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